Cipla: Stock About to EXPLODE (or CRASH)? 3 Signs You NEED to See!
Indian markets started positive. Asian Paints and Bajaj Auto saw breakouts, targetting 3150 and 10000 respectively. Cipla consolidated, hold or wait for break above 1535.
CONTENTS: Cipla: Stock About to EXPLODE (or CRASH)?
Watch Asian Paints, Bajaj Auto, Cipla
Cipla: Stock About to EXPLODE (or CRASH)?
Indian benchmark indices started the week on a positive trajectory, closing higher. Enthusiasm surrounding the budget, robust foreign institutional investor (FII) inflows, strong IT earnings, and a surge in PSU banking stocks fueled the optimistic mood at Dalal Street. The BSE Sensex climbed by 145.52 points, or 0.18%, to close at 80,664.86.
The Nifty50 index rose by 84.55 points, or 0.35%, closing the day at 24,586.70. Among the prominent large-cap stocks drawing trader attention today are Asian Paints Ltd, Bajaj Auto Ltd, and Cipla Ltd. Jigar S Patel, Senior Manager and Technical Research Analyst at Anand Rathi Shares and Stock Brokers, shares his insights on these stocks ahead of Tuesday’s trading session:
Asian Paints: Buy above 2950, target 3150
Asian Paints has broken through its critical resistance level of Rs 2,940 and is currently trading steadily around Rs 2,950. This breakout, accompanied by significant trading volume, suggests potential upward momentum for the stock.
The Daily MACD has formed a bullish crossover above the zero line, indicating a positive trend and suggesting favorable buying opportunities around the current price levels. Investors may consider purchasing shares in the range of Rs 2,950-2,960, targeting a potential upside towards Rs 3,150. To manage risk, a prudent approach would be to set a stop-loss around Rs 2,855 on a daily closing basis.
Bajaj Auto: Buy 9650-9675, target 10000
Regarding Bajaj Auto, the stock has been consolidating between Rs 9,365-9,666 recently but has now shown a clear breakout with substantial trading volume. The Daily RSI reversing from the 50 levels further supports a bullish outlook. Investors might consider initiating long positions in the range of Rs 9,650-9,675, targeting an upside potential of Rs 10,000. To mitigate risk, it’s advisable to set a stop-loss at Rs 9,488 on a daily closing basis.
Cipla: Hold or wait for break above 1535
Cipla has been trading within a narrow price range of Rs 1,485-1,535 recently, indicating a period of consolidation with stable sideways movement. In the previous trading session, the stock briefly tested the upper boundary of this range at Rs 1,535 but failed to sustain above it, suggesting potential resistance at this level. Moreover, a bearish technical signal has emerged with the appearance of a shooting star candlestick pattern on the daily chart, typically signaling a potential reversal or weakening of the current upward trend.
Given these indicators, it is advisable for existing holders of Cipla to consider taking profits within the range of Rs 1,500-1,525. For those looking to initiate fresh positions, it would be prudent to wait for a daily close above Rs 1,535 before considering buying. In such a scenario, the target price could be set at Rs 1,600, with a stop-loss placed at Rs 1,499 on a daily closing basis to manage risk effectively.
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